Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1887-11-03
CORRUPTION.
f. II. Nichols Before the Pacific Rail-
way Commission.
Showing How Things are Done Inter
eSting Testimony.


II. Nichols, formerly treasurer of the
central branch OF the Central Pacific rail
way, then known as the Atchison and
Pixies Peak railway, was the first witness.
He detailed the organization and the
construction OF the first one hundred
miles of the Atchison and Pixies Peak
, railroad, He said he considered that the
road had a perfect right TO consolidate
with another road, and that it's grants of
land should go 20 the road into which it
was merged, The witness then ex planned
the difficulties they had experienced in
trying to fuldl the government require
ments, and had finally found it impossible
to fully carry out the road. Only one
tenth of the lands which we're TO be
granted to them by the government came
TO them.
Commissioner Anderson remarked that
it seemed impossible that a road intend.
ed to run only 100 miles should be al
lowed to consolidate and run TO the Paci-
tic. The witness replied that a statute
permitted the consolidation, In the con
solidation with the Atchison, Colorado
and Pacific among the controlling pow
ers were Oliver Ames, h. Nj. Pomeroy,
Erastus Corning, Henry Willard, William
c. Wetmore, John A, Stewart, Governor
William Clatiin, and A. S. Barnes. The
read employed among many others,
Thomas A. Hendricks aud Beverly John
son, butmot when they we're in office.
Before the reorganization, when he came
in, 400 first mortgage bonds were issued
TO those previously in power, but ne has
never been able to find the reason for il.
But this
OBLIGATION WAS MADE CONDITIONAL
when he and HE friends went into the
company. Witness never received any
of the 400 bonds. The books of the con
struction OF the road known as the Os,
borne books were lost. Thomas NJ. 10th
er attended to the disbursements. No
other money, save the bonds, the witness
said was disbursci, except for compensa-
ton.
Witness said that no bond nor dollar
was distributed except for n return, but
bonds were issued in consideration of
loans. If $4,000 or $4,000 was put in
TO the company for three or four months
bond would be given in addition to the
interest About seyenty-five bonds were
so issued Then there were bonds for
what were known as existing obliga-
TONS" which we're not defined. Witness
got four of the bonds, as shown by the
books. Governor Ames kept n record of
the roads transactions in note book.
Between 1870 and 1873 the road was in n
bad way. In 1879 the first mortgage
bonds had TO be funded. When witness
and his friends resolved to run the road
through to Denver, Jay Gould stepped in
and paved $3.50 per share for stock that
was, according TO the witness, of little
value. Mr.. Nichols said he believed that
Mr.. Gould got his information az TO the
roads intention from one Joe Richard.
son, who was flung out of different Offices
on the road. After the sale WAS made,
witness, who conducted it, was paid $685.
600 for legal services. When he went to
Washington in 1868 TO see about the bill
for the relief of the Central Branch, Mr..
Nichols interviewed the Congressman.
No money was given 10 Congressmen, but
some was expended in dinners for them
at the Arlington. These were gwen for
the
PURPOSE or GETTING ACQUAINTED
with the members and talking about the
bllls AAANbih bShhhAg hllN " VI Ah'ff
S2344l was expended for such incidental
expenses. William NJ. Eyarts was paid a
fee of $1,000 Two items of i 600 which
were charged against him, Mr.. Nichols
said, were probably for acme political
operations OF Mr.. Pomeroy. Mr., Nichols
said that auy inference from the books
of the Central branch to the effect that he
had not paid full value for all the stock
issued TO him was incorrect. He had paid
first at the rate of $50 per share, and af-
forwards $40 a share. The books show
ing that for 1876 shares of stock issued
at one time, and 1919 shares al another he
had only paid S62, 100 TO the company
could not be right. He believes he had
90l shares of his own and l0l shares Of
his fathers estate, part Of which be
transferred TO Oliver Ames.
Mr. Nichols said that he paid at tho
rate of 500 per share on such stock az
! he received. Tho books upon which the
accountants Of the commission had based
their figures must be wrong. He could
not understand why the books did not
show any payment by him for 1919 shares
at one time, nor could no explain why he
should pay its par value for stock about
January, 1879, when Gould was about TO
buy in the stock at $3.50, and while the
stock was selling as low as so cents on
| the dollar.
! Commissioner Andersen astOniehed the
witness by agking him what had become
Of $l3l, 600 charged against him on the
books. Witness thought it must have
been for counsel fees, dinners for Con
gressmen, and incidental expenses.
Witness thought the Central branet
was yet entitled 10 the government
lands 100 miles beyond the western ter
minus of the road. He did not believe
the fact that they had not carried theii
road that distance made any difference
They had filed their maps and we're eK
onerated from continuance of the ROAD
Mr.. Nichols believed the government
should wipe out the accumulation of in
terests on all its claims against the Paci
fc railroads, as they have ali benefited tn
public to greater extent. They coul'
then pay the principal.